Crowdfunding News Roundup: October 19, 2013

The headline says it all… WePay is seeing some pretty impressive traction providing payment services to crowdfunding campaigns, but they’re quickly moving toward robust solutions for platforms as well. A provided API has driven growth for WePay in the crowdfunding sector. The payment provider is now facilitating up to $1.5 million per day in transactions in the crowdfunding space.

Taxation and liability… two facets of crowdfunding campaigns that project creators need to be well-versed in before launching a campaign. This article tackles both issues and includes some solutions in regards to navigating the risks of both.

Are offerings to accredited investors true “crowdfunding?” That question lies at the core of this article, which tackles various forms of confusion in the crowdfunding space. It also mentions the new Fung Institute crowdfunding study, which we will be covering in tomorrow’s featured story on Crowdfund Insider.

David Prosser examines the revelation that crowdfunding platforms in the UK actually long to be regulated. Specifically, he postulates that the platforms stand to benefit from the legitimacy and intrinsic trust that comes with operating in the sunshine. There are also potential benefits for investors that include sheltering returns from taxation.

With 76% accuracy, researchers at the Swiss Federal Institute of Technology in Lausanne know whether a Kickstarter campaign will be successful or not within four hours of launch based on a proprietary algorithm. This is precisely why so many industry advocates tell crowdfunders to build a network and secure funding commitments before launching a campaign.

Yancey Strickler opines on the difference between a good idea and a well-sold idea, an issue that is important for crowdfunding platforms like Kickstarter. “If you approach it with openness and ask people to help you, you get a lot more leeway,” Strickler says.